Chapter 4 Capital Budgeting and Basic Investment Appraisal ...

B Internal rate of return. C Accounting rate of return. D Payback period 4. A company is considering a project for investment which will cost $70,000 now and another $10,000 in year five. The company has a cost of capital of 8%. The project has the following discounted cash flows: Year Discounted cash flows $ 1 23,148 2 30,007 3 19,846 4 14,701 ................
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